Hyundai and Kia intend to outperform Volkswagen in Europe
By Jonathan, 23 Jan, 2012. 0 Comments
2013 Hyundai Veloster Turbo
Hyundai and its Kia Motors Corp. unit intend to outperform Volkswagen more than three to one in VW's home base, in an attempt to repeat their success in the United States. Earlier this month, VW celebrated its breakthrough year in the U.S. as well as the highest yearly sales in the country since 2002. However, the celebration proved to be premature, as the Hyundai Elantra sedan beat VW's Passat as the North American Car of the Year at the Detroit car show two days after the celebration. This event emphasizes Hyundai's status as a major rival of Volkswagen.
Allan Rushforth, Hyundai's chief operating officer for the European operations, stated that it is "very important" for the company to be successful in Europe, which is a "top priority" due to the fact that the region affects how the company is perceived elsewhere. The automaker, which is known for low prices, is hitting on Europe while the debt crisis in the region makes consumers cost-conscious. The mix of reliability and value of Hyundai helped it more than double worldwide deliveries since 2004, outperforming VW's 60 percent growth, according to researcher IHS Automotive.
Last year, sales of VW in the EFTA and EU countries increased 9 percent to 1.68 million units, providing the company a 12.4 percent market share, according to the data from Brussels-based industry group ACEA. On the other hand, sales of Hyundai in the region climbed 11.5 percent to 398,129 units, obtaining a 2.9 percent share of the market. Kia sold 293,960 units in the same period, an increase of 11.8 percent compared to 2010 figures, acquiring a 2.2 percent market share.
Stefan Bratzel, director of the Center of Automotive Management at the University of Applied Sciences in Bergisch Gladbach, Germany, commented that Hyundai is one of the "most serious challengers" of VW. He explained that the combination of good value, design and quality is "a solid basis." Also, the company is getting "more innovative" each year, he noted. [source: Autonews]
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